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Policymakers around the world have sought to emulate the industrial conditions that gave rise to the Silicon Valley economic dynamo of the 1990s. Although theories about the factors that underlie regional entrepreneurship rates are in abundant supply, there has been little systematic, empirical research to support these theories. New research shows that when acquisitions of private firms and Initial Public Offerings (IPOs) of stock occur in the same region, these events accelerate the region's rate of new venture formation. There isn't a city in the country that wouldn't like to have a vibrant high-tech area in the neighborhood.
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